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Clerical links first guaranteed fund to FTSE 100 in retail push

Clerical Medical is planning its first capital guaranteed fund as part of a push into the retail fund market.

The secure investment plan will offer full capital protection with upwards of 90 per cent exposure to the FTSE 100 index and is likely to have a five-and-a-half year term. The fund has an Oeic structure and so is eligible for Isas and Pep transfers and returns subject to CGT.

The details of the product are being finalised and could change if there is a significant move in the derivatives market ahead of the planned launch on March 1.

The offer period will straddle tax years so inves-tors can use this year’s and next year’s tax allowances.

Minimum investment is 5,000. Commission is available at 3 per cent initial and 0.5 per cent trail.

There are no plans to link the funds to any of the group’s investment bonds.

Investment marketing manager Rod MacDonald says that the product will be tranche-based with rolling launch periods so investors can roll over returns into the next vehicle.

He says participation rates may reach 100 per cent but will be no less than 90 per cent.

MacDonald says: “Some IFAs have got a very fixed view of passive funds but if you get capital protection and a high participation rate you may be losing the dividends but this is a good core holding for more cautious investors.”


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